14Notice of intention to charge land to be given to purchaser and trustee

14 Notice of intention to charge land to be given to purchaser and trustee

14 Notice of intention to charge land to be given to purchaser and trustee

(1) Before charging a lot the subject of an instalment contract with any form of security (other than statutory charges) which could enable the interest of the purchaser to be overreached by a creditor directly or indirectly, the vendor shall give to the purchaser, or the assignee of the purchaser, and to the trustee under the trust deed relating to the subdivision in which such lot is included notice in a form approved by the Registrar-General of the vendor’s intention so to charge the lot.

(2)

(a) Where a vendor under an instalment contract gives to the purchaser a notice referred to in subsection (1), the vendor shall not within a period of twenty-eight days after giving the notice charge the lot comprised in the instalment contract as is mentioned in subsection (1).

(b) Where a purchaser who has been given a notice referred to in subsection (1) has within twenty-eight days after such notice was given served on the vendor a notice informing the vendor that the purchaser proposes to exercise the purchaser’s rights under the stipulation implied by section 13, the vendor shall not within a period of twenty-eight days after the service on the vendor of the notice so informing the vendor charge the lot comprised in the instalment contract.

(3) Where a purchaser or the purchaser’s assignee—

(a) has been given a notice referred to in subsection (l), and

(b) has not exercised the rights conferred on the purchaser by the stipulation implied by section 13,

then during the currency of the security to which such notice relates given in respect of the lot the purchaser or assignee shall not be entitled to exercise such rights, but nothing in this subsection affects any other rights of the purchaser or assignee under the instalment contract.

(4) In this section, vendor includes any assignee of a vendor and any person for the time being entitled to receive instalments under the instalment contract who has acquired in the lot the subject of the instalment contract an interest capable of being the subject of such a charge as is referred to in subsection (1).

s 14: Am 1998 No 4, Sch 1 [4].